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Glencore investing $10M with Falco Resources to get "Horne 5" project operational near Rouyn

Oct 28, 2020

Falco Resources Ltd. has entered into agreements with Glencore Canada Corporation and its affiliated companies related to its flagship Horne 5 Project, located in Rouyn-Noranda, Québec.

The agreements include a $10 million bridge financing to fund the continued advancement of the Horne 5 Project and life of mine copper and zinc concentrate offtake agreements.

The Horne 5 Project will benefit from Glencore’s renowned expertise in processing base metal concentrates and metals marketing," said Luc Lessard, President and Chief Executive Officer of Falco. "The processing of Horne 5 copper concentrate at Glencore’s Horne Smelter will also add to the local economic benefits generated by the Horne 5 Project. The bridge financing provided by Glencore clearly supports the advancement of the work plan in order to continue to reduce risks, resolve challenges and identify additional synergies, all with the goal of working towards a Principal Operating License and Indemnity Agreement and commencing dewatering. The concentrate agreements, the potential equity ownership, and the 2% net smelter return royalty interest held indirectly through BaseCore LLP provide strong alignment between Glencore and Falco, along with our other major partners.”

Marc Bédard, Glencore Global Head of Copper Metallurgical Operations, stated: “We are pleased to enter into these agreements in order to further align our interests with Falco. While there remains significant work to be done and challenges to be addressed, Glencore Canada is committed to working with all stakeholders towards creating the winning conditions necessary for the further development of the Horne 5 Project and of the fully integrated copper industry in Quebec, an industry vital to the transition towards the electrification of transportation.”

Tags: Quebec / Deals & Financial / Copper / All Articles